Could tax reform benefit consumer spending?

Investment strategies featuring the quality factor could benefit from current trends in consumer spending

Time to read: 2 min

Advance estimates of US retail sales for December 2017 displayed vibrant year-over-year growth of 5.64%, according to the US Census Bureau.1 The most recent report, released on Jan. 12, covers sales ex-food, automobiles, gasoline and building materials. December sales growth was at its highest level since peaks in 2011 and 2014, and was above the trend seen since early 2011 — further highlighting strength in consumer activity.

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Calculating the impact of tax reform

Weekly Market Compass: Will the benefits outweigh the concerns?

Time to read: 5 min

In a number of places around the world, it’s an exciting time to be a taxpayer — or tax attorney. That’s because a variety of countries have brought or are bringing tax cuts to fruition.

At the end of 2017, the US saw the passage of a tax reform bill with many elements to it, ranging from household tax cuts to corporate tax cuts. In France, tax cuts, including a business tax cut, were implemented. The Netherlands and Belgium both enacted tax cuts in 2017. In December, Japan enacted new corporate tax cuts, including ones tied to incentives. And other countries are pondering corporate tax cuts in order to remain competitive with those countries that have already lowered taxes on their businesses.

Not all tax cuts have the same impact

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Tax reform: A year-end bonus for fixed income?

How the new tax legislation will impact the US investment grade market

Time to read: 3 min

Despite the near non-stop drama of the legislative process, we ended December with the Tax Cut and Jobs Act of 2017 being signed into law. What does this mean for fixed income investors? In my opinion, the news is overwhelmingly positive for the US investment grade market; here are four reasons why.

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What does US tax reform mean for the muni market?

Certain provisions could impact supply and demand for US municipal bonds

Time to read: 3 min

Tax reform is currently underway in Congress and could have important implications for the tax-exempt municipal market. As we wait for a final agreement between the House and Senate versions — which could come as soon as today or tomorrow — we can make some observations about how tax reform is likely to impact the US municipal bond market, based on the details reported to date.

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How could tax reform impact your college savings?

What you need to know about tax reform and education savings plans

Jon VoglerTime to read: 2 min

The tax reform process has drawn national attention for its proposed corporate and individual tax cuts, as well as the potential deduction and rule changes intended to raise revenue to at least partially offset them. We recently touched on the retirement-related effects of these proposed revisions. Now, let’s consider the possible effects of tax reform changes on education savings plans.

The tax reform bill passed by the House of Representatives on Nov. 16 would make changes to both 529 plans and Coverdell accounts. The tax reform bill from the Senate, which was passed by the Senate Finance Committee on Nov. 16, but has not been brought before the full Senate for a vote as of this writing, would also revise 529 plans. Let’s explore the key implications on both types of savings plans.

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